Industrial production grows at 2.4% in December on the back of manufacturing uptick

The main reason for the slump in factory output growth in November 2018 was the poor show from the manufacturing sector

ET Online|

Updated: Feb 12, 2019, 05.53 PM IST

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A relatively favourable base and a seasonally strong month contributed to the uptick.

India’s industrial production grew by 2.4 % in December, a month after recording a 17 -month low growth due to poor show from the manufacturing sector.

Data released by the Central Statistics Office showed while mining and electricity output reduced to -1% and 4.4%respectively in December, manufacturing expanded by 2.7% during the month.

Lead indicators for IIP remain sluggish, yet a relatively favourable base and a seasonally strong month contributed to the uptick.

In November 2018, manufacturing, which constitutes 77.63 per cent of IIP, shrank 0.4 per cent versus 10.4 per cent growth a year ago.

Data from the Central Statistics Office showed that the growth in industrial production in October 2018 was revised upwards to 8.4 per cent, from 8.1 per cent.

The main reason for the slump in factory output growth in November 2018 was the poor show from the manufacturing sector, which contracted 0.4 per cent in November 2018, against the robust 10.4 per cent growth seen in November 2017.

RBI in its latest policy meet has revised inflation target downward going forwarrd, with 2.8% in Q4:2018-19, 3.2-3.4% in H1:2019-20 and 3.9% in Q3:2019-20, with risks broadly balanced around the central trajectory.